ITR refunds: What's causing the delay? CBDT chairman shares update

CBDT chairman said that an analysis is being conducted of the wrongful deductions claimed by taxpayers, which is leading to a delay in ITR refunds.

The Central Board of Direct Taxes (CBDT) chairman on Monday shared an important update regarding the delays in income tax refunds for the financial year 2024-2025. He also informed that the tax department is undertaking an analysis of the wrongful deductions claimed in certain cases.

CBDT chairman said that some of the income tax refund claims were identified as "high-value" or were "red-flagged" by the system due to claims of certain deductions.(Pixaby/Representational image)

While the ITR filing deadline this year was September 16, taxpayers across India are still waiting for their tax refunds.

When will you get ITR refund?

Talking about the refunds being released, CBDT Chairman Ravi Agrawal said that “low-value refunds are being released,” according to PTI news agency. He further said that the remaining refunds will be released by this month or by December.

He said that the department found some wrong refunds or deductions that were being claimed, and the process to verify that is ongoing, Agrawal told reporters after he inaugurated a taxpayers' lounge at the ongoing India International Trade Fair (IITF).

What is causing the delay in refunds

Agrawal said that an analysis is being conducted of the wrongful deductions claimed by taxpayers, which is leading to a delay in the issuance of refunds.

He said that some of the refund claims were identified as "high-value" or were "red-flagged" by the system due to claims of certain deductions.

"We have also written to the taxpayers to file a revised return in case they have forgotten something," he was quoted as saying.

The chairman also stated that a negative growth is being observed in the refund, possibly because refund claims have also gone down, even as TDS (Tax Deducted at Source) rates were rationalised.

As per the PTI report, refund issuances dropped about 18 per cent to over ₹2.42 lakh crore between April 1 and November 10.

Agrawal also said the department and the Board were working to reduce litigation vis-à-vis direct tax cases. He said that the appellate authorities are working overtime to ensure that the “pendency is liquidated”.

Comparing the pending cases to past years, Agarwal said that this year, over 40 per cent more appeals have been disposed of compared to last year, and he believed they would end the year with a much higher number of appeals disposed of.

Meanwhile, the IT department will notify the ITR forms and rules under the simplified Income Tax Act, 2025, which will come into effect from the next fiscal year.